<PAGE>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February, 1999
NORDIC AMERICAN TANKER SHIPPING LIMITED
(Translation of registrant's name into English)
Cedar House
41 Cedar Avenue
Hamilton HMEX
Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing
the information to the commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes No X
<PAGE>
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein is a copy of the Preliminary Analysis of
Financial Condition and Results of Operations as of December 31,
1998 of Nordic American Tanker Shipping Limited (the "Company")
issued on February 4, 1999.
ADDITIONAL INFORMATION
The British Petroleum Company p.l.c. files annual reports
on Form 20-F (File No. 1-6262) and periodic reports on Form 6-K
with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended.
2
<PAGE>
PRELIMINARY ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
AS OF
DECEMBER 31, 1998
Introduction
This is a preliminary analysis of the Company's financial
condition and results of operations for the year ended December
31, 1998. The numbers and analysis contained in this preliminary
report are subject to adjustment upon completion of the Company's
audited financial statements. These will be included in the
Company's Annual Report for the year ended on December 31, 1998.
Overview
The Company owns three modern double hull 150,000 dead weight
tonne suezmax tankers (the "Vessels"), which were delivered in the
last half of 1997. The Vessels were built at Samsung Heavy
Industries.
BP Shipping Ltd (the "Charterer") has agreed to charter each
Vessel for a period of seven years from September 30, 1997. Each
Charter is subject to extension at the option of the Charterer for
up to seven successive one-year periods During the term of each
Charter (including any extension thereof) the Charterer is
obligated to pay (i) the Base Rate, which is charterhire at a
fixed minimum daily rate of $13,500 per Vessel per day (T/C
equivalent of $22,000 per day), payable quarterly in advance and
(ii) Additional Hire, to the extent spot charter rates exceed
certain levels, payable quarterly in arrears, from January 1998.
The amount of Additional Hire for each quarter, if any, will be
determined by the Brokers Panel.
On September 30, 1998 the Company received $3,726,000 in Base
Hire from the Charterer for the period from October 1 to December
31, 1998. In January 1999, the Brokers Panel in London determined
that there would be no Additional Hire for the period October 1 to
December 31, 1998. The total charterhire for the period was thus
$3,726,000 or $13,500 per day per Vessel (T/C equivalent of
$22,000 per day per Vessel). Charterhire (T/C equivalent) in the
1st, 2nd and 3rd quarter of 1998 was $26,632, $22,000 and $22,000
per day per Vessel respectively.
On January 4, 1999 the Company received $ 3,645,000 in Base
Hire from the Charterer for the period from January 1 to March 31,
1999.
3
<PAGE>
Results of Operations
The Company's revenues from the charterhire for the period
January 1 to December 31, 1998 derived from the Base Hire of
$14,782,500 ($13,500 per day per Vessel) and Additional Hire for
the three month period of January 1 to March 31, 1998 of
$1,250,640 ($4,632 per day per Vessel). Total charterhire for the
period from January 1 to December 31 was $16,033,140 (T/C
equivalent of $23,142 per day per Vessel).
Net costs during the period from January 1 to December 31,
1998, were $7,335,826 of which twelve months depreciation of the
Vessels constitutes $6,831,228.
Liquidity and Capital Resources
Total Assets of the Company at December 31, 1998 were
$164,337,094 compared to $170,682,878 at December 31, 1997. Cash
held at December 31, 1998 was $3,637,758.
Dividend payment
Total dividend paid in 1998 was $15,712,420.50 or $1.43 per Share.
The dividend payments in 1998 have been as follows:
1. quarter: USD 0.40 per share
2. quarter: USD 0.41 per share
3. quarter: USD 0.32 per share
4. quarter: USD 0.30 per share
NAT has declared a dividend of USD 0.32 for the first quarter
of 1999. The dividend of USD 0.32 will be paid on or about
February 12 to Shareholders of record as of January 27, 1999.
Repurchase of Common Stock
In December 1998 the Company repurchased 2,107,244 shares in
the Company at USD 12.50 per share through a Dutch Auction Tender
at a price of USD 12.50 per share. After the transaction, a total
of 9,706,606 shares are in issue, down from 11,813,850 shares.
Payment for the repurchased shares was at the end of December
1998.
An important objective of the repurchase of shares was to
increase the Company's cash distribution to Shareholders while the
Vessels are on charter to BP Shipping. While the Vessels are on
charter, the minimum cash distribution per share is expected to
4
<PAGE>
increase by USD 0.09, from USD 1.20 to USD 1.29 per year; an
increase of 7.5 %.
The Company has drawn upon a Loan of USD 30 mill with Den
norske Bank, Oslo (DnB) to finance the repurchase of shares. The
total purchase price of the shares including the costs associated
with the transaction was USD 27.0 mill. The balance of approx.
USD 3.0 mill will remain in the Company until it has been decided
how these funds should be utilised.
The Company has entered into an interest swap agreement with
DnB, enabling the Company to pay a fixed interest on the loan of
5.80 % p.a. including the margin of 0.525 % for the next 6 years.
The swap agreement terminates on the final repayment date of the
Loan, i.e. the 4th quarter of year 2004.
QEF Election
The Company intends to circulate to its U.S. shareholders
shortly a calculation that U.S. shareholders who have made an "QEF
Election" will need for their federal income tax returns.
5
<PAGE>
BALANCE SHEET INFORMATION
December 31, 1998
ASSETS
Cash and cash on deposit $ 3,637,758
Bareboat hire receivable $ 0
Prepaid insurance $ 83,333
Prepaid finance cost $ 86,875
Vessels $160,529,128
---------------------------------------------------------
Total Assets $164,337,094
LIABILITIES
Accounts payable $ 586,020
Accrued interest on bank loan $ 43,313
Bank loan $ 30,000,000
SHAREHOLDER'S EQUITY
9,706,606 Common Shares, par value $ 97,066
$0.01 per share, outstanding
50 million authorized
Other shareholder equity $133,610,695
---------------------------------------------------------
Total liabilities & equity $164,337,094
INCOME STATEMENT INFORMATION
Year ended December 31, 1998
Revenue $16,033,140
Ship Broker commission $ (184,781)
Management Fee Expense $ (250,000)
Insurance Expense $ (112,503)
Depreciation $(6,831,228)
Other expenses $ (10,000)
Net financial items $ 52,686
---------------------------------------------------------
Net profit $ 8,697,314
6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
NORDIC AMERICAN TANKER SHIPPING LIMITED
(registrant)
Dated: February 4, 1999 By: /s/Herbjorn Hansson
___________________
Herbjorn Hansson
President and Chief
Executive Officer
7
01318002.AV4
